31st Mar 2005 06:00
Embargoed Release: 07:00hrs 31 March 2005 PAN AFRICAN RESOURCES PLC AND SUBSIDIAIRES FINAL RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2004 CHAIRMAN'S STATEMENTDear ShareholderThis is Pan African Resources plc's (Pan African) first Annual Report since theacquisition of the two exploration subsidiaries and re-admission to trading onAIM on the 8th September 2004.ResultsThe group has a focused mission for gold exploration in Africa and commencedtrading with two advancing projects in Mozambique and Ghana. The Mozambiqueproject, Manica, is in an industry recognised gold area and on acquisition hadsignificant gold values in mineralisations outlined by drill holes in its WestFair Bride project area. The Ghana project (Wa Project) in the northern part ofthe country also has an inferred resource of some 370,000 ounces of gold withsignificant upside potential.Since the re-admission to AIM further exploration and reverse circulationdrilling has taken place on both projects and as announced previously the grouphas significantly increased its information base of the project areas.In the Manica project drill assay results have not yet been received.On the Wa project previously discovered areas have been further drill testedfor infill and extensions both at depth and along strike. Some significantintersections have been obtained including 10 meters @ 6.44 g/t gold (including4 meters @ 14.25 g/t gold) and 7meters @ 9.93 g/t gold ( including 4 meters @16.47 g/t gold).The Wa Project Collette property which has only been superficially testedindicates major potential and is currently the site of exploration drilling totest this potential.Despite some negative pressure on the gold price including suggestions that theUS Dollar may strengthen and potential IMF gold sales, the metal has remainedresilient. Consequently the requirement for new gold discoveries is paramountto most major gold producers since their reserve bases are being depletedagainst increased production.Your Board remains convinced that Africa in general has the optimum mix ofgeological potential and acceptable political risk and thus compares favourablywith other regions of the world.The group has and continues to pursue the acquisition of further gold intereststo enhance shareholder value. It is expected that one or more transactions willbe concluded during the first half of 2005.The initial period of an emerging mining company is inevitably one ofconsolidation. Having consolidated assets and systems I feel confident that theyear 2005 will lead to the positive development of our current portfolio andthe acquisition of other potentially valuable projects.The directors report that for the 18 month period to 30 September 2004 thegroup returned a loss of ‚£164,231 compared with a loss in the previous 12 monthperiod of ‚£62,067 reflecting the additional overheads arising from the group'senhanced activity. The cash balance at 30 September 2004 was ‚£1,208,255 and thecash balance at the date of this report was approximately ‚£700,000.Finally, I would like to thank my fellow directors and management for thefocused work during the period under review noting the resignation of Mr TrygveKroepelien on 29 March 2005 and thank him for his valuable support during theformative stages of the group.EnquiriesColin BirdChairmanTel: 020 7590 880630 March 2005For further information please contact:Nathan SteinbergDirector, White Knight Investments PlcTel. 07768 116 866Adam Reynolds / Ben SimonsHansard CommunicationsTel. 020 7245 1100 PAN AFRICAN RESOURCES PLC AND SUBSIDIARIES CONSOLIDATED PROFIT AND LOSS ACCOUNTPeriod ended 30 September 2004 30/09/04 31/03/03 ‚£ ‚£ Administrative expenses - (operating loss) (178,374) (80,492) Gain/ (loss) on disposal of fixed asset - 3,246investments _______ _______ (178,374) (77,246) Interest receivable 14,143 15,179 _______ _______ Loss on ordinary activities before taxation (164,231) (62,067) Tax on loss on ordinary activities - - _______ _______ Loss for the financial period (164,231) (62,067) ======= ======= Loss per ordinary share - basic (0.09p) (0.05p) ======= ======= CONSOLIDATED BALANCE SHEETAS AT 30 SEPTEMBER 2004 30/09/04 30/03/03 ‚£ ‚£ ‚£ ‚£ Fixed assets Intangible assets 3,831,710 - Investments 24,200 29,200 _________ ________ 3,855,910 29,200 Current assets Debtors 18,434 1,000 Cash at bank 1,224,133 570,644 _________ _________ 1,242,567 571,644 Creditors: amounts falling (107,163) (28,973) due within one year _________ _________ 1,135,404 542,671 _________ ________ Total assets less current 4,991,314 571,871liabilities ======== ======== Capital and reserves Share capital 3,520,000 1,300,000 Share premium account 2,404,829 1,526,155 Merger reserve 1,485,000 - Profit and loss account (2,418,515) (2,254,284) _________ _________ Shareholders' funds 4,991,314 571,871 ========= =========CONSOLIDATED CASH FLOW STATEMENTPeriod ended 30 September 2004 30/09/04 31/03/03 ‚£ ‚£ Cash flow statement Net cash outflow from operating (118,199) (99,336)activities Returns on investments and servicing of 14,143 15,179finance Capital expenditure and financial (777,405) 3,250investment Acquisitions (43,724) - Financing 1,578,674 - _____________ ____________ Increase/(Decrease) in cash 653,489 (80,907) ============ =========== NOTES TO THE UNAUDITED INTERIM ACCOUNTS Eighteen Months Ended 30 September 2004 1 The calculation of earnings per share is based on the losses of ‚£164,231 and on the number of shares in issue being the adjusted weighted average number of shares in issue totalling 170,803,279. The fully diluted earnings per share are based on 170,803,279 ordinary shares allowing for the full exercise of outstanding share purchase options and the earnings as stated above. There is no dilutive effect in the period and in the previous period in accordance with FRS 14 paragraph 56.2 The comparative figures were for the year to 31 March 2003.3 The financial information set out above does not constitute statutory accounts within the meaning of s.240 of the Companies Act 1985.4 Copies of the Statement are available to the public free of charge from the company at Manfield House, 2nd Floor, 1 Southampton Street, London WC2R 0LR during normal office hours, Saturdays, Sundays and bank holidays excepted, for 31 days from today.ENDPAN AFRICAN RESOURCES PLCRelated Shares:
Pan African Resources